The Hindu Business Line : Biodiesel union inks pact with UK-based co

Coimbatore , Aug. 20 THE Coimbatore District Jatropha Biodiesel Producers' Union has entered into an agreement with the UK-based D1 Oils Ltd for developing an India-based feedstock supply of jatropha seeds, processing and refining of the seeds and marketing of biodiesel using D1's proprietary technology.

The venture is for a specified period of 5 years. While the UK-based oil company has agreed to pump in $10 million for supply of technical inputs, which includes a designer-made mobile refinery, with a crushing capacity of 9,000 litres of biodiesel, the Indian counterpart has agreed to identify an estimated 12,000 hectares of land within the State for cultivation of jatropha.

The biodiesel producers' union has entered into a contract with the cooperative milk producers' union - Aavin, for cultivating jatropha on diary farms, especially in the farm of those supplying products to Aavin.

Speaking to Business Line, the Managing Director of the union, Mr S.C. Vijayavelu, said that D1 Oils had picked Coimbatore as the base for supply of plant material, seeds etc. to the rest of Asia.

The union has in all earnest started collecting the germplasm of the plant material.

`We are planning to import the non-toxic variety of the plant material from Africa,' he said.

According to Mr Vijayavelu, the venture would generate revenue from multiple sources and would not be limited to sale of D1 branded biodiesel alone.

`The sale of by-products as a result of refinery operations, intercropping and other business opportunities are potential revenue generating avenues. We have also entered into a supply agreement with farm cooperatives for purchase of feedstock at a mutually agreed rate and with the regional and State Government for distribution of the fuel.'

He explained that one or more units of the mobile expeller units would be installed on-site for processing of harvested seeds.

Mr Vijayavelu said that D1 Oils was in the process of preparing a public offering of its stock. But D1 Oil Company sources were not available for comment. According to Mr Vijayavelu, as per the joint venture agreement, the biodiesel producers' union could participate in any opportunity in the prospective value of the oil company's public stock.

However, in the event of the venture getting dissolved, the union would retain the licence without any further cost.